IRS Warns Taxpayers of Holiday Scams Targeting Personal and Financial Information

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IRS issues urgent warning as holiday scammers target taxpayers’ personal and financial information.

At a Glance

  • IRS warns of increased scam activity during holiday season
  • Scammers impersonate IRS agents and demand gift card payments
  • Taxpayers advised to be cautious with online shopping and emails
  • IRS never requests immediate payment via gift cards or wire transfers
  • Victims should report scams to proper authorities

IRS Sounds Alarm on Holiday Season Scams

As Americans gear up for the holiday season, the Internal Revenue Service (IRS) has issued a stark warning about an uptick in scams targeting taxpayers’ personal and financial information. Despite the official tax season not commencing until next year, fraudsters are capitalizing on the festive distractions to deceive unsuspecting individuals.

IRS Commissioner Danny Werfel emphasized the heightened risk during this period, stating, “The holiday shopping season and the fast-approaching tax season create a tempting target for identity thieves and scam artists.” Werfel urged citizens to exercise extra caution to protect their sensitive information from falling into the wrong hands.

Common Scam Tactics to Watch Out For

Scammers employ various sophisticated methods to trick taxpayers. These include sending fake emails, posing as IRS agents over the phone, and threatening individuals with fabricated penalties. A particularly prevalent scheme involves gift card scams, where fraudsters impersonate government or collections officials and demand gift cards as payment for alleged tax debts.

“Taxpayers should use extra caution this holiday season to protect their valuable personal and financial information, whether shopping online or clicking on links in email and other messages. A little extra caution can protect taxpayers’ confidential information and reduce the risk of identity theft in the upcoming filing season,” advised IRS Commissioner Danny Werfel.

The IRS has explicitly stated that it will never “demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer.” Any such requests should be treated as red flags for potential scams.

Protecting Yourself from Holiday Scams

To safeguard against these holiday season threats, the IRS and Security Summit partners recommend several protective measures. These include using secure websites for online shopping, avoiding public Wi-Fi networks, regularly updating security software, and employing strong, unique passwords for different accounts. The implementation of multi-factor authentication for online accounts is also strongly advised.

Taxpayers should be particularly wary of phishing attempts, which can manifest as fake delivery alerts or official-looking emails. To verify package statuses, it’s recommended to use official shipping company tools or customer support channels rather than clicking on suspicious links in emails or text messages.

Reporting Scams and Seeking Help

If you believe you’ve fallen victim to a scam, it’s crucial to act quickly. The IRS advises reporting incidents to the Treasury Inspector General for Tax Administration or the Federal Trade Commission. For cases of suspected identity theft, taxpayers should file Form 14039 with the IRS.

To further educate the public on these threats, the IRS has scheduled a webinar on scams and identity theft for December 3rd. This initiative is part of the 9th Annual National Tax Security Awareness Week, aimed at equipping taxpayers with the knowledge to protect themselves from fraudulent activities.

As we navigate through the holiday season and approach the tax filing period, staying vigilant and informed is our best defense against these malicious actors. By adopting protective measures and remaining alert to suspicious activities, we can ensure a safer holiday season and a more secure tax filing experience in the coming year.

Sources:

  1. IRS warns of holiday scams, encourages protecting sensitive personal information as 9th annual National Tax Security Awareness Week starts
  2. Don’t let scammers ruin holiday gift card giving
  3. Taxpayers Beware: IRS Warns of Holiday Season Scams and Fraudsters

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